Despite the recent volatility in the Indian stock market, the Nifty will eventually reach this target in the long run, believes CLSA's Laurence Balanco. This prediction bodes well for long-term investors who have invested in the Indian market, Balanco told CNBC-TV18.

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The Nifty 50 index is trading 0.5 percent or 84 points higher from its previous close. Forty stocks in the 50-share index are trading with gains. According to Balanco, the long-term target for the Nifty is set at 20,700. Balanco also said that the long-term target of 20,000 remains intact for the Nifty.

This prediction was made by CLSA in the past, and Balanco believes that it will still hold true. This indicates that the Indian stock market is still on an upward trend, and investors can expect good returns in the long run.

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However, Balanco also cautioned that there may be short-term fluctuations in the market. He noted that the short-term support level for the Nifty is the September 2022 lows of 16,800.

“Currently there is the short term shelf of support by the September 2022 lows, which is around 16,800 area, and that's roughly middle part of the range,” he said.

This means that if the Nifty falls below this level in the short term, it could face further selling pressure. Balanco also highlighted that the next major support level for the Nifty is at 15,400-15,500.

“We're talking about eight percent decline, where the next major support area comes through at that 15,400 to 15,500 area,” he mentioned.

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This is a critical level for the Nifty, and if it falls below this level, it could trigger more significant selling pressure in the market.

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